Dubai Residential REIT IPO Raises AED 2.1B on DFM Listing

Photo: Dubai Government Media Office

Dubai Holding, through its fully owned company DHAM REIT Management LLC, has successfully completed the book building and subscription process for the Initial Public Offering (IPO) of Dubai Residential REIT on the Dubai Financial Market (DFM). The final price for each unit has been fixed at AED 1.10.

This means that when Dubai Residential REIT gets listed on the stock exchange, the total value of the company will be AED 14.3 billion (which is about USD 3.9 billion). The company is expected to give investors a dividend yield of 7.7% in 2025, which means a good return on their investment.

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The IPO received very strong interest from both UAE retail investors and international institutions. Because of this high demand, the size of the IPO was increased from 12.5% to 15% of the total unit capital of the company. Investors showed such a strong response that the demand reached over AED 56 billion (USD 15 billion). This was more than 26 times the number of units available, which shows huge interest from the public. Because of this strong demand, the final price was fixed at the highest end of the expected range, helping the company raise AED 2,145 million (USD 584 million) from the IPO.

Dubai Holding CEO's View

Amit Kaushal, the Group CEO of Dubai Holding, said that the strong interest from both local and global investors shows that people trust Dubai Holding’s vision and the strong performance of their housing projects. He added that Dubai Residential REIT has been built and managed over more than 20 years, always keeping in mind the needs of Dubai’s diverse population.

He also said this trust from investors shows that the UAE economy is stable and growing, and Dubai’s stock markets are becoming more attractive to people around the world. He is confident that Dubai Residential REIT will continue to perform well and will play a big role in improving how people live in the city.

CEO of Asset Management Shares Thoughts

Malek Al Malek, Group CEO of Dubai Holding Asset Management and Chairman of DHAM REIT’s Investment Committee, said the strong demand shows that more people are now interested in safe, income-generating investments like this REIT. The REIT owns 35,700 homes across different types of housing and has very high occupancy and retention rates, which means people are staying in these homes for a long time. This proves the REIT can give steady and strong returns over time. He added that Dubai Residential REIT is now seen as the leader in residential leasing in the city.

About the IPO Details

• A total of 1.95 billion units (1,950,000,000) were offered in the IPO.

• This represents 15% of the total units of the REIT.

• The units were offered by DHAM Investments LLC, a part of Dubai Holding and the only owner of the REIT before the IPO.

• After the listing, DHAM Investments LLC will still own 85% of the REIT.

What Happens Next?

People who applied to buy shares in the UAE Retail Offering (First Tranche) will get an SMS on May 26, 2025, confirming how many units they got. Refunds will also start on that same date.

The REIT’s units are expected to start trading on the Dubai Financial Market (DFM) around May 28, 2025, under the ticker “DUBAIRESI” and ISIN “AEE01657D252”, depending on market conditions and final regulatory approvals.

Dividend Plans

Dubai Residential REIT plans to give dividends twice a year—in April and September. The first dividend is expected in September 2025.

The REIT has announced that its first two dividend payments (in September 2025 and April 2026) will be the higher of AED 1,100 million or 80% of the profit (before changes in property value) for the year ending December 31, 2025. Starting from 2026, the REIT plans to give out at least 80% of its profits as dividends each year, depending on board approval and the rules of the UAE prospectus.

Banks and Advisors

Several top banks are involved in helping with the IPO:

• Citigroup, Emirates NBD Capital, and Morgan Stanley are acting as Joint Global Coordinators and Bookrunners.

• Emirates NBD Bank is the Lead Receiving Bank.

• Other supporting banks include Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Arqaam Capital, and others.

Lock-up Period

As per the agreement with the banks, the selling shareholder (DHAM Investments LLC) will not sell more units for 180 days after the listing. The REIT itself is also restricted from selling more units during this time.

Price Stabilization

The company has chosen xCube LLC, a DFM-approved firm, to help stabilize the unit price after listing. Some of the IPO money (from the sale of up to 243.75 million units) will be given to xCube to help maintain price stability on the DFM if needed. The involved banks will not take part in or benefit from this price stabilization activity.